Shanthi Gears Intrinsic Value

SHANTIGEAR • Capital Goods
Current Stock Price
₹450.70
Primary Intrinsic Value
₹135.21
Market Cap
₹360.6 Cr
+11.8% Upside
Median Value
₹503.75
Value Range
₹135 - ₹1127
Assessment
Trading Below Median Value
Safety Margin
10.5%

SHANTIGEAR Valuation Methods Summary

Method Type Intrinsic Value Range Upside/Downside Details
P/E Based Valuation earnings ₹135.21 ₹108.17 - ₹162.25 -70.0% EPS: ₹10.80, Sector P/E: 12x
Book Value Method asset ₹503.75 ₹453.38 - ₹554.12 +11.8% Book Value/Share: ₹503.75, P/B: 1.0x
Revenue Multiple Method revenue ₹555.00 ₹499.50 - ₹610.50 +23.1% Revenue/Share: ₹693.75, P/S: 0.8x
EBITDA Multiple Method earnings ₹901.40 ₹811.26 - ₹991.54 +100.0% EBITDA: ₹127.00Cr, EV/EBITDA: 6x
Simple DCF (5Y) dcf ₹1126.75 ₹901.40 - ₹1352.10 +150.0% CF Growth: 15.0%, Discount: 15%
PEG Ratio Method growth ₹156.92 ₹141.23 - ₹172.61 -65.2% EPS Growth: 18.2%, Fair P/E: 14.5x
Growth Adjusted P/E growth ₹135.21 ₹121.69 - ₹148.73 -70.0% Revenue Growth: 12.5%, Adj P/E: 8.5x
ROE Based Valuation profitability ₹901.40 ₹811.26 - ₹991.54 +100.0% ROE: 20.6%, P/E Multiple: 16x
Graham Defensive Method conservative ₹349.87 ₹314.88 - ₹384.86 -22.4% EPS: ₹10.80, BVPS: ₹503.75
Method Types: Earnings Asset DCF Growth Dividend Conservative

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Valuation Comparison Chart

SHANTIGEAR Intrinsic Value Analysis

What is the intrinsic value of SHANTIGEAR?

Based on our comprehensive analysis using 9 different valuation methods, the estimated intrinsic value of Shanthi Gears (SHANTIGEAR) is ₹503.75 (median value). With the current market price of ₹450.70, this represents a +11.8% variance from our estimated fair value.

The valuation range spans from ₹135.21 to ₹1126.75, indicating ₹135.21 - ₹1126.75.

Is SHANTIGEAR undervalued or overvalued?

Based on our multi-method analysis, Shanthi Gears (SHANTIGEAR) appears to be trading below median value by approximately 11.8%.

Financial Health Analysis

Financial Metric Current Value Industry Benchmark Assessment Impact on Valuation
Current Ratio 382.00 Industry Standard: 2.0+ Above 2.0 Measures short-term liquidity capacity
Debt to Equity Ratio 1.25 Industry Standard: <0.5 Above 1.0 Indicates financial leverage level
Return on Equity 20.6% Industry Standard: 15%+ Above 15% Measures shareholder return efficiency
Operating Margin 20.0% Industry Standard: 20%+ Above 20% Indicates operational efficiency level
Asset Turnover Ratio 1.10x Industry Standard: 1.0x+ Above 1.0x Measures asset utilization efficiency

Cash Flow Quality Analysis

Period Operating Cash Flow Free Cash Flow Cash Flow Quality Sustainability Score
March 2025 ₹91 Cr ₹72 Cr Positive Free Cash Flow 8/10
March 2024 ₹36 Cr ₹30 Cr Positive Free Cash Flow 8/10
March 2023 ₹63 Cr ₹50 Cr Positive Free Cash Flow 8/10
March 2022 ₹35 Cr ₹27 Cr Positive Free Cash Flow 8/10
March 2021 ₹31 Cr ₹22 Cr Positive Free Cash Flow 8/10